November 20, 2003

Asians Turn To New Zealand Beef To Substitute US' Products
 

US beef prices hit 10-year highs last week. However the gains for New Zealand farmers have been offset by the rising dollar and in addition reaped an unexpected spin-off.

Asian importers that usually prefer US grain-fed beef are taking an increasing interest in New Zealand product as US prices skyrocket, says Meat New Zealand chief executive Mark Jeffries.

Jeffries has just returned from a marketing mission to Korea, Japan, Taiwan and Malaysia.

Asian consumers appeared to be increasingly prepared to set aside their prejudice against our grass-fed beef, he said.

"They are starting to experiment in restaurants."

If prices stayed high it would provide a fantastic marketing platform for New Zealand beef, he said.

The wholesale price for bull beef had risen 35% in the past 12 months, Jeffries said.

Factoring in the effects of the exchange rate, farmers had seen an improvement of just 8%.

The US beef industry is expecting beef prices to remain record highs till at least the end of the first quarter next year.